Strong demand for mortgage lending has driven this with the building society recording gross mortgage lending of £861m for the year

In contrast, this figure was £645m for 2020, equivalent to a 33% increase in mortgage lending activity.

Meanwhile, net core residential lending was up 44%, from £228m being lent in 2020 to £330m in 2021

This translated meant 5,300 new mortgage customers were signed up by Newcastle Building Society throughout 2021.

New products from the building society were partly responsible for this onboarding of clients.

In 2021, the company became the first lender to offer mortgages under ‘deposit lock’ which is an insurance-backed collaboration with the Home Builders Federation and aimed at first time buyers with small deposits.

Newcastle Building Society was also one of the first lenders to sign up to the government’s First Homes scheme which helps local first-time buyers, by offering homes at a discount of at least 30% compared to the market price.

Overall, renewed demand for mortgage products helped the company record an increased operating profit (before impairments and provisions) of £28.5m.

In contrast, after the first year of the pandemic, Newcastle Building Society’s operating profit for 2020 was only £14.9m.

The company’s underlying operating profit similarly increased during this time from £16.9m to £22m.

Welcoming the results, Newcastle Building Society chief executive officer Andrew Haigh says: “We have delivered a strong set of results characterised by a spirit of creativity, agility and commitment.”

Elsewhere, in 2021 £82m was invested for the society’s members via its financial advice subsidiary: Newcastle Financial Advisers Limited.

Another subsidiary – Newcastle Strategic Solutions Ltd, the society’s fintech brand – continued to grow and now employs 600 staff with a “strong pipeline” of new business being established.

Looking ahead, Haugh says: “While we all remain hopeful that during 2022 [that] we will begin to see the Covid-19 pandemic reduce its impact on our day to day lives, it is clear that our customers and our communities will face many new challenges in the year ahead.

“However, the resolve and determination of our colleague team, along with our investment in the society’s capabilities and infrastructure, will ensure we can continue to be there for our members in the ways and places they need us to be.”